Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
, b+ t9 x' r+ l& ?companies producing Jet fuels but Biofuels. Also no wonder if some of
# c3 S. Z7 M+ x, O- n* b( N% othese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
* z5 B4 |- `; u6 M) M) _EXXON, BG, BP, Cheveron ....xyz.. oils
( F9 e! U5 \) b- e1 v
Recently OPEC reduced crude oil production twice over just a few
# I$ w. y% U! w+ Vmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
# X: G( d+ ~4 U6 ]3 mA year ago these things would have spiked the price of crude oil by at
* J; x3 `4 r; w: ?6 A# {# hleast $50.00 per barrel. Today, oil price declined by a record amount.

( H  T" Q  @" {. [" }
' S, Q# T4 X/ j' \( @There are several reasons the price of oil is decreasing in the face
$ o4 l( f  y# Eof so much news. These reasons are:


1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
; U0 U+ H6 {# X% v6 D1 \5 rArabia.
  G. Z. d2 X- l5 a& }1 ]

1 n' Q: @7 V8 e8 b9 v+ t2. New natural gas has been found in Pennsylvania and West Virginia.
: C% P! l3 N) q( WThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
0 Y: r) y4 b, k5 O: Q. k! C

  X; K: w+ o; B! k; R4. Production of bio-fuels is beginning to reach critical mass. Bio
  f  Z6 M- L5 Y( J5 F! a+ nfuel is being produced from many plants and algae. The production
' h" w- ]! ?# h- S* r6 R* M8 e0 cpotential per acre in some cases is astounding. Many countries are
# z6 @; Q: z3 J3 a6 _4 W- zracing to produce bio fuels.


+ E6 J: D! S  t! L5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
' h6 ?: ]# R5 uto bio-diesel producers. One pork processing plant in Oklahoma is
1 {) s) o+ m3 z1 |7 a4 Tproducing 30,000 gallons of bio-diesel per day from pork fat.
9 m( s9 s% E% v# j) {

6. There are 99 nuclear reactors in various stages of planning and
# r! N8 k$ Q, J; }7 _0 W6 ?' X2 Lconstruction around the world at this time. Several hundred more are
4 s% ]$ X. b" y; \+ i& c' A* cexpected to be built in the future. Much of the energy they produce
( r/ H0 R; R* Swill replace oil.

  U+ T  {; D* \9 R2 @" @) |
7. Every company in any form of transportaion business is replacing
* j" M4 k& l. c" @. g1 dolder equipment such as trucks, airplanes, train engines, ships, etc.
+ ^7 d5 z/ {8 j, |with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.
+ `9 I/ M4 t# u" |3 n7 p! L+ u; t

( v3 u8 Q) G( e$ rAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
1 C4 g; S& o3 L. G. _/ q) |# `

8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
1 @% r5 I0 d" y( Q. m5 Woil.

6 r  Z3 {( m' p' q( P
  J' K  X7 D" a" x6 T* `- T, I7 b9. Coal is being transformed into a clean burning liquid fuel. The CO2
3 Z5 h# x* w& ]: u8 ]  B# S) iproduced as a byproduct is sold to oil companies for injection into
oil wells.
* d  c; a9 R% A$ H% k' [6 d0 @: A

+ V. \% w+ |- g* K$ V& a" G; N# w10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


- e% i( k3 Q, ^+ REach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
& \4 |) i* y8 qchanging. The important thing is that OPEC no longer has the ability
5 {7 ~6 R( w6 v/ [( ^to control oil prices.


4 N3 n8 ]% l* L8 m/ p7 S* aWith the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
* i4 k+ g2 q$ ?% s0 OIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
, J6 e+ P  l7 v( u; D2 \+ }

* ]! R9 v* K2 s- o, q" ~The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only